What is Straight Piece Rate System in HRM? PDF Download

Learn Straight Piece Rate System definition in hrm with explanation to study “What is Straight Piece Rate System”. Study straight piece rate system explanation with HRM terms to review HRM course for online MBA programs.

Straight Piece Rate System Definition

  • Pay system in which wages are determined by multiplying the number of units produced by the piece rate for one unit.

    Human Resource Management by Robert L. Mathis, John H. Jackson



Straight Piece Rate System Explanation

Straight piece rate framework is the most straightforward strategy for installment by result wherein installment is made by the quantity of units delivered at a fixed rate for every unit. Another sort of the straight piece rate technique is piece rate with ensured time rate in which the specialist is ensured the time rate with a chance of getting piece compensation if his profit as per piece rate framework are more than his time wage income. Laborers are paid by their benefits since differentiation is made among proficient and wasteful specialists. A productive laborer can procure more wages since wages are connected to yield. Along these lines, this technique is an enhancement for the time wage framework. Expanded generation will lessen fixed costs per unit and cost of creation will diminish, enabling a more prominent edge of benefit to the business.

Keep Learning HRM Explanations

What is Distributive Justice?

Distributive equity concerns the socially only designation of merchandise. Regularly stood out from simply process, which is worried about the ...

What is Dual Career Ladder?

This expansion to the conventional vocation stepping stool enables representatives to be advanced along either a supervisory or specialized track. ...

What is Bonus?

A reward or bonus is a budgetary pay that is well beyond the ordinary installment desires for its beneficiary. Rewards ...

What is Market Line?

The security market line (SML) is a line drawn on an outline that fills in as a graphical portrayal of ...

What is Panel Interview?

A board meeting or pannel interview is a prospective employee meet-up in which a candidate answers inquiries from a gathering ...

What is Applicant Pool?

The applicant pool is the complete number of individuals who have connected for a vacant position - the business at ...